The U.S. Department of Housing and Urban Development has published an interim rule and removed a final review layer in the hopes of speeding up the approval process for large housing developments that receive federal support.
The change eliminates a previous requirement that developers of housing projects with more than 200 units or a mortgage of more than $5M obtain a final approval from HUD environmental clearance officers before moving ahead on a project.
The rule is planned to take effect June 22, though public comment is open through July 21.
HUD officials said the existing rule unnecessarily adds processing time to developments that often have tight deadlines for closing and “requires a duplicative technical assistance process where technical assistance is already available,” making approval timelines longer than they need to be.
The change will primarily affect affordable housing developments.
The original rule to require environmental reviews was implemented in 1971, and the final approval step was added in 1996. HUD argued the final round of oversight is redundant and not required under the enabling legislation.
In March, President Donald Trump signed two executive orders that also targeted increasing housing projects. The first charged agencies with removing unnecessary regulatory barriers impeding development. The second called on Congress to streamline and decrease regulatory hurdles and permit community banks to underwrite a greater number of mortgages. (Source)
